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Old 04-20-2010 | 07:27 AM
  #35097  
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acl65pilot
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From: A-320A
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Originally Posted by Sink r8
True, but they're already financing billions. So the only reasons (that I can think of) you would finance these (and thus repay some other debt) would be that a) you can't get good terms on these two, b) you want to reduce your current profits.

The notion that this is for balance sheet rebuilding doesn't make sense to me. Sure, you're not adding to debt, but you're also depleting your cash by an equivalent amount.

My guess is that Delta wants to show just enough profit to satisfy investors, but not so much they have to share with labor right away. We'll be "profitable" as soon as we sign contracts while we're "not profitable".
RA stated that we are now in the business of paying cash for our jets. This is good because the main reason we are where we are is margins went to heck, and we financed everything we have. We leveraged the company to the point that we could not weather a downturn outside of court protection.

There will be another downturn and by paying off debt we will have less in the way of debt service commitments next time around. Add that to a diversified route network, and property owned outright, we can one claim the depreciation on said asset, and two not pay this money out when we do not have it.

In regard to labor or US, they know we are not that nearsighted nor that dim witted to look at the bottom line. Even if the MEC signed off on it, I do not see the rank and file playing with the bait.

We shall see what happens, and the playbooks all have the typical moves, but simply put, we as the pilots have a significant investment in this corporation. The execs know this, and from the conversations I have had, are aware that we are wanting a return.
Of course the proof is in the pudding, but I think that it is no secret that we want restoration on many levels. Time will be the story teller, but as Sailing points out if you use history as a litmus test, this contract should be the best in the history of this group.

Of course, we need to define "best," as that is open to interpretation.